Frequently Asked Questions
Each investor must determine their risk tolerance levels. This will determine how much exposure one wishes to take when the model switches signals. Aggressive investors may go 100% long a 3-times ETF such as TYH or TYP depending on the signal. Conservative investors may only go 30% long such an ETF or 50% to 100% long a 1-times ETF such as SPY or QQQQ.
On a neutral signal, one should at least reduce or entirely sell their positions. The record of the timing model is based on going to 100% cash on a neutral signal, 100% long NASDAQ Composite or TYH on a buy signal, and 100% short NASDAQ Composite or TYH on a sell signal. For timing model results using the NASDAQ Composite and TYH, go here.